This workplace version of a report card is beneficial to both to management and employees for it identifies how their respective best can be brought out. This paper aims to describe how effective performance appraisals can increase employee performance as well as incorporate segments on the strategic benefits of performance appraisals, potential forms of bias within the appraisal system.
Moreover, it will include how performance appraisals can contribute to achieving planned objectives. When it comes to the human resources department's contribution to an organization performance appraisal plays an indispensable role. Not only may an effective appraisal eradicate behavior and work-quality conflicts but it can also persuade employees to contribute more.
An effective employee appraisal provides an opportunity to give feedback as well as receive it "Often, a company will ask its employees to perform 360-degree feedback that assesses peers and subordinates as well as supervisors and management” (Falcone& Sachs, 2007). Nonetheless, the occasion for offering and receiving constructive criticism should not be disregarded. For it may be one of the few intervals over the course of the year where employees and reviewers, in most cases, the employees' supervisors, meet for an extensive face-to-face dialogue concerning all facets of the job.
Employees are able to receive important information as to what areas of the job that they are performing well and those where they need to improve, thus, allowing them to know precisely where they stand. Reviewers may likewise receive feedback from employees that can help improve the work setting. Reviewers may as well unearth conflicts that may hinder employees from producing at their very best, and if necessary reviewers can take corrective actions. If efficiently executed, it can be highly satisfying for both employees and the reviewers. On top of revising performance based on earlier set objectives, performance appraisal is also a good time to set new ones.
"If deficiencies are identified during the appraisal, the reviewer and employee can work together to establish new goals as well as develop a plan to reach them” (Cappelli & Conyon, 2018). For instance, if a salesman fails to meet his quarterly sales objectives, the salesman and the assessor can create a strategy so that he can meet his next quarter's objectives by augmenting the call volume percentage. These appraisals are significant for bettering the communication amongst employees and reviewers.
"By speaking openly about the job performance and issues that may be affecting it, the employee and reviewer can develop a sense of trust that may have been lacking” (Cappelli& Conyon, 2018). Thus, employees who previously felt uncomfortable to approach reviewers with their concerns may be more open to voice their concerns, which can stop minor issues from developing into major problems over time.
“Performance appraisals can provide key information that can help evaluate recruiting practices” (Naeem, Jamal & Riaz, 2017). For instance, providing that a high ratio of employees who were employed within a recent timeframe score well on their evaluations, an organization may infer that its recruiting method is functioning effectually.
Conversely, a high ratio of poor performers may specify that the recruiting methods are not up to par and the hiring procedure may need to be revamped. One of the most problematic facets within the performance appraisal process is directly linked with biases. Bias can be defined as a preconception in support of or against an individual(s).
Thus, it is evidently clear that employees look forward to their performance appraisals being fair and without any biases. During the performance appraisal process many kinds of bias can manifest. One of the most common one is Contrast which takes place when a manager equates an employee's performance to other employees rather than organizational standards.
"When employees are ranked in comparison, someone must end up at the bottom, even if they are exceeding the company standard. The problem isn't the employee – it's the goal or standard that has been set" (Javidmehr & Ebrahimpour, 2015).
Another one is Halo this is where an employee is highly rated in all extents due to one area that they perform extremely well in. This is a common theme in sales which I have witnessed quite often. The employee meets or exceeds the numbers established and the administrative team loves that.
However, when behind the scenes, such employee will create chaos and does not have the deference of co-workers. Another one that I have witnessed a little too often is Leniency this occurs when managers give all that are a part of their team a satisfactory grade. Usually happens when a manager has too many reviews to conduct. “The manager has dozens of reviews to work on and a heart full of good intentions. Somewhere around review number 17, the manager gets burned out and starts giving everyone a satisfactory response" (Javidmehr & Ebrahimpour, 2015).
For written supporting statements are not required. An effectual appraisal and performance management procedure can significantly impact the culture of an organization as well as staff morale and employee engagement stages. All of which improve company's brand and the maintenance of exceptional talent within an organization.
For they provide quantifiable calculations crucial for a production oriented work setting and they measure the quality of an employee's work. The significance of performance appraisal is that it is instrumental in deciding whether an employee's abilities is aptly coordinated with the employee's job functions.
Cappelli, P., & Conyon, M. J. (2018). What Do Performance Appraisals Do? (employee evaluation) (Report). ILR Review, (1). Falcone, P., & Sachs, R. T. (2007). Productive Performance Appraisals. New York: AMACOM.
Javidmehr, M., & Ebrahimpour, M. (2015). Performance appraisal bias and errors: the influences and consequences. (Report). International Journal of Organizational Leadership,
Naeem, M., Jamal, W., & Riaz, M. K. (2017). The Relationship of Employees' Performance Appraisal Satisfaction with Employees' Outcomes: Evidence from Higher Educational Institutes. FWU Journal of Social Sciences, 11(2), 71-81.